Corporation Legal Meaning and Definition

Here is a simplified definition of the legal term Corporation.

Corporation (noun): A corporation is a legal entity established by individuals, shareholders, or owners, with the purpose of conducting business. This entity is separate from its owners and has its own rights and privileges under business laws. It can buy, sell, own properties, and has the authority to claim debts. One of its key features is limiting the shareholders' liability to the corporation's assets; this means the shareholders are not personally liable for the corporation's debts. The corporation's profits are distributed among its members or shareholders.